Traders Purchase Large Volume of Call Options on Quantum Computing (NASDAQ:QUBT)

Key Points

• Unusually heavy call-option buying hit Quantum Computing Inc. on Tuesday, with traders purchasing 117,670 calls — about 297% above the normal volume. The activity suggests investors are betting on more upside in QUBT shares.
• QUBT also got a lift from better-than-expected first-quarter results, beating both revenue and EPS estimates while posting narrower losses than feared. Revenue rose sharply year over year, reinforcing the view that execution is improving.
• The stock has seen additional support from growth-oriented acquisitions and technical momentum, including deals for Luminar Semiconductor and NuCrypt and a move above its 200-day average. Still, analyst views remain mixed, with an average rating of Hold and an average target price of $17.50.

Quantum Computing Inc. (NASDAQ:QUBT - Get Free Report) was the target of unusually large options trading on Tuesday. Traders purchased 117,670 call options on the company. This is an increase of 297% compared to the typical volume of 29,663 call options.

Key Stories Impacting Quantum Computing

Here are the key news stories impacting Quantum Computing this week:

• Positive Sentiment: QUBT reported first-quarter results that beat both revenue and earnings expectations, with revenue surging year over year and losses narrower than expected, signaling improving execution. Quantum Computing Inc. (QUBT) Reports Q1 Loss, Tops Revenue Estimates
• Positive Sentiment: Management’s growth strategy is getting attention, including the $110 million acquisition of Luminar Semiconductor and $5 million purchase of NuCrypt, which expand QUBT’s photonics and quantum communications capabilities. Quantum Computing Inc. Stock (QUBT) Opinions on Q1 Earnings Release
• Positive Sentiment: Bullish trading activity is adding momentum, with unusually heavy call-option buying suggesting investors are positioning for further upside. Quantum Computing Inc. Stock (QUBT) Opinions on Q1 Earnings Release
• Neutral Sentiment: The stock has also been boosted by technical momentum after moving above its 200-day average, which can attract trend-following traders. QUBT Breaks Above Its 200-Day Moving Average — As CEO Bets on 'Scalable' Quantum
• Neutral Sentiment: Some institutional ownership has been mixed, with large funds both adding and trimming positions in recent quarters, which may reflect differing views on valuation and execution risk. Quantum Computing Inc. Stock (QUBT) Opinions on Q1 Earnings Release

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on QUBT shares. Wall Street Zen lowered Quantum Computing from a "hold" rating to a "sell" rating in a research note on Saturday, March 7th. Cantor Fitzgerald cut their price objective on Quantum Computing from $15.00 to $10.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. Northland Securities started coverage on Quantum Computing in a research note on Monday, April 20th. They issued an "outperform" rating and a $20.00 price objective on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Quantum Computing in a research note on Friday, March 27th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $22.00 price objective on shares of Quantum Computing in a research note on Tuesday, March 3rd. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Quantum Computing currently has an average rating of "Hold" and an average target price of $17.50.

Insider Transactions at Quantum Computing

In other Quantum Computing news, CFO Christopher Bruce Roberts sold 9,360 shares of the company's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $7.85, for a total transaction of $73,476.00. Following the completion of the transaction, the chief financial officer owned 1,123,038 shares of the company's stock, valued at $8,815,848.30. This represents a 0.83% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 19.30% of the company's stock.

Institutional Investors Weigh In On Quantum Computing

Hedge funds and other institutional investors have recently modified their holdings of the company. Farther Finance Advisors LLC increased its holdings in shares of Quantum Computing by 724.7% during the third quarter. Farther Finance Advisors LLC now owns 1,501 shares of the company's stock valued at $28,000 after acquiring an additional 1,319 shares in the last quarter. FWL Investment Management LLC bought a new stake in shares of Quantum Computing during the second quarter valued at approximately $33,000. New Millennium Group LLC bought a new stake in shares of Quantum Computing during the third quarter valued at approximately $36,000. Strs Ohio bought a new stake in Quantum Computing during the third quarter worth $39,000. Finally, Triumph Capital Management bought a new stake in Quantum Computing during the third quarter worth $45,000. Institutional investors own 4.26% of the company's stock.

Quantum Computing Stock Up 13.1%

QUBT traded up $1.34 during trading on Tuesday, hitting $11.52. The company's stock had a trading volume of 104,901,840 shares, compared to its average volume of 14,995,755. Quantum Computing has a twelve month low of $6.18 and a twelve month high of $25.84. The stock's fifty day moving average price is $8.02 and its 200-day moving average price is $10.20. The firm has a market capitalization of $2.60 billion, a P/E ratio of -76.20 and a beta of 3.70.

Quantum Computing (NASDAQ:QUBT - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.03. The business had revenue of $3.69 million during the quarter, compared to analyst estimates of $3.13 million. Equities research analysts expect that Quantum Computing will post -0.24 EPS for the current fiscal year.

Quantum Computing Company Profile

Quantum Computing Inc NASDAQ: QUBT is a provider of quantum computing and quantum-inspired algorithm solutions, headquartered in the United States with research and development operations in Europe. Originally incorporated as Unigrid Software in 2019, the company rebranded in 2021 to reflect its strategic focus on commercializing emerging quantum technologies for enterprise and government customers.

The company's flagship product, Qatalyst, is a quantum-inspired optimization platform that applies advanced heuristic solvers to address complex combinatorial problems in logistics, supply chain management, finance and other data-intensive fields.

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